Conclusion of construction contract in Vilnius

| Source: Pro Kapital Grupp

Tallinn, 2014-08-04 07:00 CEST (GLOBE NEWSWIRE) -- AS Pro Kapital Grupp informs that subsidiary company of the group Pro Kapital Bonum UAB has on 01.08.2014 concluded the construction contract with UAB Merko Statyba for construction and design works of new residential apartment building in Vilnius. The lump sum of the contract is 10 013 120 (2 900 000 EUR), excluding VAT.

With the construction contract it is agreed that UAB Merko Statyba shall start with the design works of the new building as of signing the contract. Construction works of the new residential apartment building shall start after Pro Kapital Bonum UAB gives the notification to start with the construction works.  Pro Kapital Bonum UAB has until 30.11.2014 the right to give such notification. Pro Kapital Bonum UAB has the right not to order the construction works.

Pro Kapital Bonum UAB shall use the period until 30.11.2014 to arrange the presales of apartments and financing of the project. 

The new building will be located in Lithuania Vilnius, at Saltiniu Namai residential building complex, which is being developed by Pro Kapital. The new building will have in total 41 apartments, 3 commercial premises and net sellable area of 2841 m2. The planned construction period is 15 months as of the start of the construction works.

The CEO of AS Pro Kapital Grupp Paolo Vittorio Michelozzi commented: “we have seen strong demand in the upper class residential market in Vilnius and are very pleased with the sales of the already constructed buildings and the sales of the building we started construction earlier this year. In February 2014 we started with the construction of new building with 19 units, works are planned to be finished in February 2015, as of 01.08.2014 16 units out of 19 units are covered by presale contracts. The sales level of 84% during construction period shows that there is strong demand for the product Pro Kapital is developing in Vilnius. We have chosen a reliable partner UAB Merko Statyba to perform the construction works of the new building and are confident of the success of this new project.”

After the completion of this new building the first phase of the development of the Saltiniu Namai residential complex will be completed. The first phase of the development of the Saltiniu Namai residential complex includes in total 200 apartments, 27 commercial premises and 11 cottages. There will remain still unused development volume in the Saltiniu Namai residential complex in the second phase of the residential area. 

The transaction is not considered to be a transaction with connected persons within the meaning of the stock-exchange requirements and members of the Issuer’s supervisory board and management board are otherwise personally not interested in the transaction. 

Additional information:

Saltiniu Namai is a residential development project located in Vilnius next to the Old Town. The business plan for the Saltiniu Namai residential quarter foresees a series of apartment buildings built in stages. The location is attractive for a residential area: it is located right next to the Old Town and enjoys a good access both by cars and public transport. The creation of houses and cottages with leisure, sports and commercial zones is a remarkable contribution to the expansion of Vilnius city, where the conversion of abandoned industrial areas is prominent. Currently four five floor buildings with attics and 11 private cottages have been built. Pro Kapital has already built 143 apartments, 11 cottages and 21 commercial premises with sellable area of 15 278 m2. Currently the construction of 16 apartments and 3 commercial premises with sellable area of 1160 m2 is ongoing. Residents of Saltiniu Namai residential quarter are already enjoying the private courtyard, finished landscape works and fully equipped children‘s playground.

Pro Kapital Bonum UAB is a company, which belongs 100% to PK Invest UAB. PK Invest UAB is a 100% subsidiary of Pro Kapital Vilnus Real Estate UAB. Pro Kapital Vilnius Real Estate UAB is a 100% subsidiary of AS Pro Kapital Grupp. Pro Kapital Bonum UAB is the developer of the 44 unit building to be located in the Saltiniu Namai project in Vilnius Lithuania.

UAB Merko Statyba is a construction company, focusing on general construction, residential development and construction in Lithuania. The company is part of AS Merko Ehitus group, which comprises also the leading Estonian construction company AS Merko Ehitus Eesti and the Latvian market based SIA Merks as well as the group’s real estate development business unit together with companies holding real estate properties. As at the end of 2013, the group employed 860 people and the 2013 revenue amounted to EUR 262.7 million.

         Iveta Vanaga
         Head of Investor Relations
         Phone: +37129239064